Genaral Accounting P4

Q-1- On March 4, of the current year, BB, Inc. reacquired 5,000 shares of its common stock at $89 per share. On August 7, BB sold 3,500 of the reacquired shares at $100 per share. The remaining 1,500 shares were sold at $88 per share on November 29.

Journalize the transactions of March 4, August 7, and November 29.

Mar-4, =??

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Aug-7, =??

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Nov-29, =??

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What is the balance in Paid-in Capital from Sale of Treasury Stock on December 31, of the current year? =?? (credit)

Q2- On February 1, MA Company reacquired 7,500 shares of its common stock at $30 per share. On March 15, Marine sold 4,500 of the reacquired shares at $34 per share. On June 2, MA sold the remaining shares at $28 per share.

Journalize the transactions of February 1, March 15, and June 2.

Feb-1 =??

=??

Mar-15 =??

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=??

June-2 =??

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Q-3 On January 1, 2010, YG Company obtained an $88,000, seven year 5% installment note from FF Bank. The note requires annual payments of $15,208, with the first payment occurring on the last day of the fiscal year. The first payment consists of $4,400 interest and principal repayment of $10,808.

Journalize the following entries:

A) Issued the installment notes for cash on January 1, 2010.

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B) Paid the first annual payment on the note.

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C) Determine the amount of interest expense on the note for the first year. =$

Q-4 Prepare the journal entries for the following transactions for BC company.

A) BC company. purchased 1,200 shares of the total of 100,000 outstanding shares of MT Corp. stock for $20.75 per share plus a $70 commission.

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B) MT total earnings for the period are $84,000.

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C) MT paid a total of $40,000 in cash dividends to shareholders of record.

=??

=??

Q-5 MG, Inc. reported net income for the year ending December 31, 2012 of $483,500. Dividends paid during the year totaled $42,900. The company holds available-for-sale securities with an original cost of $162,000 and a fair value of $171,000 at the end of the year. They also hold trading securities with an original cost of $150,000 and a fair value of $147,000. Retained Earnings on January 1, 2012 was $736,400 and Accumulated Other Comprehensive Income on January 1, 2012 was $16,200.

A) Calculate the following balances to be reported in the financial statements dated December 31, 2012.

-Valuation Allowance for Available-for-Sale securities =??

– Comprehensive Income =??

– Retained Earnings =??

– Accumulated Other Comprehensive Income =??